Today, this text represents the effort of three generations of Stermole's. The original versions of the text were the sole efforts of frank stermole while John Stermole began contributing to the fifth edition. This text is an introduction of the concepts of time value of money and the related decision criteria used to evaluate investments. Application of the criteria in before-tax and after-tax investment situations provide better understanding of the three steps of economic evaluations, which include; 1) defining the problem, 2) analyzing the problem and 3) properly interpreting and presenting the economic meaning of results. The text examples and problems provide the reader with a comprehensive approach to evaluating the economic equivalence of both income-producing alternatives and then properly applying the findings.